| Real
Estate in Montenegro
Montenegro
is just beginning to blossom as far as real estate is concerned.
After 50 years of communism, the sleeping tiger is beginning to emerge.
I have traveled to Montenegro at least 6 times, and each time I am surprised
at how quickly things are changing, and then again how things are not changing.
Many people
in Montenegro have an exaggerated idea of what the value of their property
is. For instance, I asked a farmer in a small village not far from
Podgorica, what he was selling his small farm for. “$200,000!”
“Wow,” I
said, “that is a lot of money!” The farmer had no more than one
acre. The house wasn’t bad, but certainly not a beauty. It
was functional. Then I asked a doctor what his 3 bedroom 1960’s condominium
in Hrzeg Novi with a view of the sea from very window was worth…$1,000,000!
They have no rhyme or reason for value; they just grab a number out of
the air, and throw it at you. |
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They
aren’t able to travel freely in the rest of Europe, and so they are very
isolated from reality and capitalism. There is a lot of educating that
needs to be done for the property owners, and for the country of Montenegro.
Europe and America have a reasonable legal system set up for property
ownership. The officials of Crna Gora need to study both areas and
protect investors better. The real estate system in America is in
my opinion the best.
Our realtors
share their listings on a multiple listing system. The seller benefits
from every local realtor working on his property, and the agent benefits,
because he can sell all of the properties in the system. The commissions
are shared, and it is truly beneficial to everyone concerned.
I would love to see this happen someday in Europe, and in Montenegro.
It is a great way to market properties.
You shouldn’t
be afraid to invest here, however. There are many opportunities.
You need to be a smart investor and find someone you can trust to get you
through the mine fields of investing in this country. One of the
biggest problems is title to the land. Tito took a lot of land from
families during his reign. Now the families can sue and get the
land returned to them. |
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problem is that sometimes the land has a huge hotel on it, or someone else
might be living on it. This can be a hassle. Montenegro
has not heard of title insurance, and so a good attorney is needed
to research the land and make sure the individual who is selling the land
is indeed the owner.
Currently there
is no good financing available. Either you bring cash, or you arrange
for the seller to carry your loan. The Banko Komercial in
Budva is offering some loans of 30 percent loan to value. Other than
that, good lending is non-existent.
Now for the
opportunities. There is waterfront land available; there is new construction
of condominiums; and Montenegro is divesting itself of all of the property
it owns. There is a huge amount of property in their inventory! The
Hotel Plaza is a gorgeous property of 500 rooms with balconies looking
at the sea.
There are
many hotels that dot the landscape up and down the seaside that are
now available for the right investor. Montenegro will not be easy
to deal with.
An investor
needs to know that there is “mordida” being paid to some government officials,
and all offers must be presented with marketing plans for the property.
Montenegro
has huge parcels waiting for the right hotel chain for a waterfront resort,
or a resort with a golf course. There is land available on parcels
that used to be for the army. These parcels are either on the sea,
or in a location that would benefit a great resort.
In Podgorica
there are beautiful new condominiums, new homes and office buildings.
There are opportunities for restaurants, and for business. Montenegro
has a very well educated population and has 60% unemployment. The
country is ready for investors who need good labor to come in and build. |
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| In the mountains,
there are gorgeous lakes and rivers that have very little development.
In Zabljak, the hotels are not great, but the location is ripe for a resort
that offers skiing in the winter and mountain sports the rest of the year.
When it is blazing hot in Podgorica, it is wonderfully cool in Zabljak.
The fishing is extraordinary, and hiking rivals the best trails
in Switzerland. There is a glacier in Dormitor, and there are huts
for hikers all over the area. There is little investment here, and
with the right investor, a lot of money could be made. |
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